Orders to U.S. factories fell for a second straight month in February, and by more than economists had predicted, renewing fears that the United States could be facing a recession. The U.S. Commerce Department said Wednesday that factory orders dropped by 1.3 percent for the month, double the decline economists had forecast. Orders fell an even bigger 2.3 percent in January, the largest decline in five months. The drop in orders came across a variety of sectors, with serious declines in orders for motor vehicles, various types of heavy machinery and demand for iron and steel. Demand for durable goods, items expected to last at least three years, fell by 1.1 percent, the report said. Demand for non-durable goods, products such as oil and chemicals, fell similarly by 1.5 percent. The weakness came despite a 5.1 percent increase in orders for commercial airplanes in February. Elsewhere, orders for motor vehicles fell by 2 percent in February after no gain in January. Demand in the auto industry has been hit hard by the rising cost of fuel. Overall, orders for transportation products posted a 1.8 percent rise in February, with the decline in auto demand offset by the strength of commercial and defense aircraft orders and increased demand for ships and boats. Orders for heavy machinery fell by 12.3 percent in February, the biggest decline since January 2004. Orders for iron and steel fell by 2.3 percent.
